East Africa Tax Alerts
We strive to keep you updated on tax developments in the East Africa Region. Our Tax Alerts contain detailed analysis of recent tax measures and their implications on businesses operating in the region.
Recent alerts and an archive of alerts from the previous 12 months appear below; for older issues, please email a request to email@example.com
The Kenyan Court of Appeal delivered a judgement on 5 February 2019 to the effect that an accrual (of an expense) in the books of accounts falls within the meaning of the word “paid” for Income Tax purposes and therefore withholding tax becomes due upon such accrual. Read more....
The Value Added Tax (General) (Amendment) regulations, 2018 effected on 19th Oct have implications for financial services as well as touching upon other industries. Issues addressed include deferment of capital goods, apportionment of input tax among other prescribed requirements. Read more....
The Tanzanian Tax Administration (Transfer Pricing) Regulations, 2018 (“TP Regulations 2018”) are now in force, repealing the previous regulations that have been operational since February 2014. The new regulations require more detailed documentation and supporting information and impose stricter penalties for non-compliance. Read more...
The High Court of Kenya, Commercial & Admiralty Division, sitting in Nairobi, on 29 November 2018 delivered judgement declaring that Value Added Tax (VAT) is not applicable on transactions for the sale or purchase of land. The Court further noted that for VAT purposes, it is immaterial whether the buildings situated on the land are residential or commercial. Read more...
In a stakeholder seminar held by the KRA on 25 October 2018 for the Petroleum and LPG sector, the revenue authority indicated that it is expected of oil marketers to issue Electronic Tax Register (ETR) or Electronic Signature Device (ESD) compliant tax invoices to all buyers. Read more
The Kenya Revenue Authority has commenced implementation of an online tool that will generate automated VAT assessments through the iTax platform. In this alert, we discuss the key features of this tool and highlight our view on this initiative. Read more
Following the administrative and policy changes recommended last month, the Government of Kenya has directed that all foreigners wishing to work in Kenya should have a work permit approved and issued before they can travel to take up their assignment in the country.. Read more
Following extensive consultations between the Kenya Revenue Authority (“KRA”) and various stakeholders in the water and juice industry, the KRA, through a joint statement dated 31 July 2018, postponed the implementation of the Excisable Goods Management System (“EGMS”) on bottled water and juices that was to commence on 1 August 2018. Read more
The Government of Kenya, through the Cabinet Secretary, Ministry of Interior and Coordination of National Government, has issued a report on the just concluded Work Permit verification exercise recently carried out during the period from 21 May to 22 July 2018. Out of this thegovernment issued its recommendations for administrative and policy changes in relation to the management of Work permits. Read more
The High Court on 19 July 2018 issued conservatory orders suspending the implementation of excise duty introduced by the Finance Bill 2018 in Paragraph 6 of Part II of the First Schedule of the Excise Duty Act, 2015 (“EDA”). Read more
The Commissioner General (“CG”) of the Kenya Revenue Authority (“KRA”) has vide Gazette Notice No 164 of 2018 adjusted specific excise duty rates for inflation on certain excisable goods in accordance with Section 10 of the Excise Duty Act. The new rates will take effect on 1 August 2018. Read more
The Tax Laws (Amendment) Bill (2018) (“the Bill”) was gazetted on the 10 April 2018. In this alert, we provide you with an analysis of the proposals in the bill, the affected products and our view on the proposed changes and the possible impact of the legislation.
The High Court on 12 March 2018 made a ruling invalidating the Excisable Goods Management System (EGMS) Regulations introduced vide Legal Notice 53 of 2017 on the premise that they were enacted in a manner that did not conform to the Constitution and the Statutory Instruments Act. This alert explores the case and the ruling made.
The Finance Act 2017 was assented into law by the President on 21 June 2017.
The analysis captures salient changes that have been effected to the Income Tax Act, 2015, the Tax Procedures Act, 2015, the Value Added Tax Act, 2013 and the Excise Duty Act, 2015 following the enactment of the Finance Bill, 2017. The analysis only reflects changes not originally contained in the Finance Bill and changes to some of the provisions of the Bill.
The East Africa Community Council of Ministers (‘Council’) reviewed the East Africa Community Customs Management Act (EAC CMA) and the East Africa Community Common External Tariff (EAC CET).
In response to the tax amnesty announced by the Government of Tanzania in the Budget Reading of 2018/19, we have prepared this alert to give you an overview, and responses to frequently asked questions with respect to the provisions under the Tax Administration (Remission of Interest and Penalty) Order, 2018. Read more...